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Sales executives salary treated as consultant charges

A/c entries 319 views 1 replies

We have around 25-30 sales person/ executive as per area and route allotted to them. We pay them as a consultant charge as we don't treat them as staff, showing 10% TDS deduction. For example:- If Mr. A's salary payable for a month is 10000/-, he will generate an invoice showing, Gross Amt Rs.11125/- Less: 10% TDS Rs.1112/- Net Payable Amt Rs.10012/-. We don't give them PF. How to pass this entry?

Also now we have to deduct Rs. 1000/- for uniform which will be providing. So, should I deduct before TDS or after TDS?

Also, we will give incentives depending upon sales targets. How to show/pass this entry?

 

Replies (1)
Whats the agreement initially with the staff?
If its a consolidated pay then its ok.
if not these are additional.
provide for such expenses.
debiting expense head and crediting outstanding liability.
outstanding liability will be shown as BALANCE SHEET UNDER CURRENT LIABILITIES HEAD.


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